Bank of America Securities analyst Justin Post reiterated a Buy rating on Expedia (EXPE – Research Report) today and set a price target of $211.00.
Justin Post has given his Buy rating due to a combination of factors influencing Expedia’s financial performance and future prospects. Despite weaker US bookings and a slight miss in revenue expectations, Expedia’s EBITDA has surpassed market predictions due to effective cost-cutting measures. The company has managed to maintain EBITDA growth by reducing operating expenses, which has been a significant factor in Post’s positive outlook.
Additionally, Expedia’s strategic focus on increasing ad revenues and cutting costs under its new CEO has bolstered its margin growth prospects. The company’s valuation appears attractive, especially when compared to its peers, with a significant upside potential in stock price. Post’s analysis suggests that if macroeconomic concerns ease, there could be a rebound in US travel, further benefiting Expedia. These elements combined have led to the reaffirmation of a Buy rating with an increased price objective.
In another report released on May 6, Evercore ISI also maintained a Buy rating on the stock with a $230.00 price target.